Sunak must close ‘non-dom’ spouse loophole

  • Current law states that MPs and members of the House of Lords can’t have non-dom status.
  • Liberal Democrats called on the Chancellor to legislate to close a loophole allowing Ministers’ spouses to be non-doms.

The Liberal Democrats have said that Rishi Sunak must do the right thing and ban Government members’ partners from claiming non-domicile status.

Currently Ministers are not allowed to hold non-dom tax status, but this rule does not apply to their immediate family. The Liberal Democrats have called on the Government to close this loophole, warning it “leaves the door open for government ministers to exploit non-dom arrangements.”

The calls come after it was revealed that the Chancellor’s wife does not have to pay UK income tax on income made abroad. This was discovered on the same day national insurance contributions increased by 1.25%, in broken Conservative promise that has hiked taxes for families struggling with the cost of living crisis.

Lib Dem Treasury Spokesperson Christine Jardine has also called on the Chancellor to disclose where his wife is domiciled for tax purposes, in order to establish whether she has avoided paying tax via a tax haven. The MP has said that failure to act upon this in a timely manner will raise questions around the Chancellor’s judgement and whether he can act in a way that does not suit “his own personal and selfish interests”.

Liberal Democrat Treasury Spokesperson Christine Jardine MP said: “Government ministers have a duty to do what’s morally right. When they change peoples’ taxes, they and their immediate families should play by the same rules as everybody else.

Christine Jardine MP

“The Chancellor’s household should be no different to the millions of UK households who now face the highest tax burden in decades. It’s just nonsensical that someone can be domiciled in a different country to the person they live with.

“Rishi Sunak must put what’s right above his own personal and selfish interests. He must take immediate action to close this loophole which leaves the door open for government ministers to exploit non-dom arrangements.

“And he must come clean on his family’s tax affairs while he’s at it. It would be a scandal if his household were to have benefitted from overseas tax havens.”

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